Comp-Save Success Stories

Implementation of Comprehensive Workers' Compensation Program Saves Modular Home Manufacturer $5,000 and Lowers Experience Mod

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Concentrated Employment Program, Inc., Ashland, WI

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Implementation of Comprehensive Workers’ Compensation Program Saves Modular Home Manufacturer $5,000 and Lowers Experience Mod

Insured
Based in Central Wisconsin, the company is a manufacturer of modular homes with more than 40 employees.

Situation
The company’s Experience Modification Factor had climbed steadily to 1.07 and management did not understand why this was occurring.

Assessment
Certified WorkComp Advisors (CWCAs) from Mosinee Insurance were called in to review the claims after one of the owners attended a Workers’ Compensation workshop sponsored by the agency.

The Advisors discovered that the insurance company had made a coding mistake with a series of claims relating to knee, shoulder and hand injuries. Some had been miscoded as indemnity claims instead of medical-only claims. In Wisconsin, as in some other states medical-only claims are discounted 70%, while claims involving indemnity and medical are charged at 100%. This coding error had driven up the company Experience Mod.

Solution
The CWCAs requested that the insurance company inform the rating bureau of the error and correct both the coding and the Experience Mod.

In addition, the CWCAs developed a Workers’ Comp plan for the company, including regular meetings with management to review Workers’ Comp issues, setting up mandatory safety meetings, coordinating loss control services and claims monitoring.

In addition, a relationship between the company and an occupational medical clinic was established for the treatment of job-related injuries. Working with the clinic, drug testing and return-to-work programs were implemented. A return-to-work program helps keep the injured employee focused on recovery at work and helps in reducing both medical expenses and time off the job.

Result
As a result of the work by Comp-Save’s CWCAs, the company’s Experience Mod dropped from 1.07 to 1.00, netting the company a $5,000 annual premium savings, while the overall Workers’ Comp plan will produce continued cost reductions over the years.